Luckin Coffee’s movable assets registration signals its financial pressure
Luckin has reportedly registered RMB 45 million ($6.7 million) worth of movable assets as collateral to Zhongguancun Technology Lease Co., Ltd., comprising mostly coffee machines and storage furniture. A firm believer of “fission marketing” and the loss-making coffee chain startup has been blowing the money bumping up subsidized campaigns for over a year. Boasting more than 2,000 physical outlets in China, Luckin had successfully raised $400 million in total during the last two funding series. However, the lease collateral indicates the cashflow problem within the company, which may halt its willingness to further this aggressive march forward.